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Are you aware of the Changes from 1 July 2014 for the Super Contribution Caps?

Many of our clients are unaware of the recent changes allowing extra contributions into super. We summarise these as follows:

Concessional Contribution Caps (Based on age of member on 30/06/2014)

  • Under 49: $30,000 (previously $25,000)
  • 49 & Over: $35,000 (previously for persons aged over 59)
  • Only Mandated Employer Contributions can be accepted for members over the age of 75.

For members making concessional contributions after turning 65, they must satisfy the work test in order to contribute to a super fund. To satisfy the work test, you must work for at least 40 hours during a consecutive 30-day period each year in which the contributions are made. Unpaid work does not meet the definition of gainfully employed.

Concessional Contributions include your employer’s compulsory Superannuation guarantee contributions, your salary-sacrificed contributions or any contributions claimed as a tax deduction.

Non Concessional Contribution Caps (Based on age of member on 01/07/2014)

  • Under 65: $180,000 (increased from $150K) or Bring forward 3 Years of Concessional Contributions $540,000
  • 65 to<75: $180,000 per annum (no bring forward rule available)
  • 75+: Non Concessional contributions cannot be accepted.

For those members that have started the 3 year bring forward Non Concessional cap prior to 01/07/2014, they will only have a maximum bring forward cap of $450,000, they will not be able to top up to $540,000 cap after 01/07/2014.

For members making non concessional contributions after turning 65, they must satisfy the work test in order to contribute to a super fund. To satisfy the work test, you must work for at least 40 hours during a consecutive 30- day period each year in which the contributions are made. Unpaid work does not meet the definition of gainfully employed.

Non Concessional contributions are voluntary contributions not claimed as an income tax deduction by you or your employer.